This paper examines governmental carbon crediting mechanisms, offering a focused look at three programs that initially operated independently of compliance schemes such as emissions trading systems or carbon taxes. The paper aims to provide insights into crediting mechanisms similar in nature to the newly launched Saudi Greenhouse Gas Crediting and Offsetting Mechanism (GCOM). It highlights key design elements, characteristics, and lessons drawn from the experiences of three selected mechanisms: Australia’s Carbon Credit Units, Thailand’s Voluntary Emission Reduction Program, and the United Kingdom’s Woodland Carbon Code (2024). The paper also explores how governments can design effective crediting mechanisms that deliver high-quality carbon credits while supporting emissions reduction and decarbonization goals – cost-effectively and at scale. To this end, it assesses key design and operational features of the selected governmental mechanisms, including how they drive participation through incentives, interact with compliance schemes, structure supply and demand, define project eligibility, facilitate carbon trading, and manage operational costs. Key takeaways include the importance of well-designed incentives, the growing role of linkages with compliance markets to boost demand, and the critical need for credible, flexible methodologies to maintain integrity and encourage project development.
